In an apparent response to Congress vice-president Rahul Gandhi charge that the BJP-led Gujarat government extended undue favours of Rs 33,000 crore to it for car manufacturing facility at Sanand, Tata Motors on Thursday released a statement that the company has, so far, received Rs 584.8 crore as loan, and not grant. It said this loan “is from taxes paid by Tata Motors”.

Without naming the Congress leader or the party in the statement, the company said: “Given the scale of the project and its potential to drive growth in the state, the Government of Gujarat offered Tata Motors an incentive package in the form of a loan (not a grant), which is to be repaid to the state government as per the loan agreement executed. The loan given to Tata Motors from the government is from taxes paid by Tata Motors. Until now, the state government has given a loan of Rs 584.8 crore to Tata Motors.”

“Since the establishment of the Sanand plant, there has been a spurt in economic activity and growth in employment (direct and indirect) within the state, making Gujarat one of the key auto hubs within the country with huge employment generation. The project has also given rise to capital investments which has further resulted in the development of incidental industrial activities and employment generation in small and medium industries,” it added.

Rahul has been attacking Prime Minister Narendra Modi, alleging that he gave away Rs 33,000 crore for the Nano plant in Sanand near Ahmedabad, while the previous UPA government gave that much money towards the MNREGA. He also claimed despite the state government’s assistance to the company, no Nano car can be spotted on the roads of Gujarat.

After Tata Motors statement, the Congress hit back at the government, saying the loan given to “poor” Tatas is at 0.01%, while the interest levied on farm loans is 18%. “Are farmers rich and Tata poor that the Gujarat government is charging high rate of interest from the farmers?” Congress’s spokesperson Randeep Singh Surjewala said.